I acquired my shares in 91 at $6.00. Thanks for the great job FDO. I think we are getting out of this dollar store business at the right time. I'm glad Dollar Tree doesn't share my view.
Sentiment: Strong Sell
Ok, DG released a statement this morning & I believe them. They need more time & it's not their fault the FTC is going slow and breaking precedent. Dreiling & his team are as competent as Levine is incompetent.
TCB, I agree that DG will go hell or highwater as soon as they get a firm divestiture count from the FTC. They have interested buyers for their divestitures, so that jump will be worthwhile once they know what's required & can run the numbers on that. Let's show a little patience and get a better return for our shares!!!
Also, DLTR won't walk away after 1/22; that's total propaganda. FDO & DLTR owe DG the time the feds are requiring to do the due diligence. DLTR's & FDO's efforts to steamroll DG right now only make them look low & unfair.
I suspect DG is weighing its strategy and options for replying to FDO's feeble attempt to sway the upcoming vote in Levine's favor.
(1) Increase their $80 cash offer?
(2) Add a "Hell or High Water" provision?
(3) Increase their $500M breakup guarantee?
or some combination of two or more of the above?
I also think DG is trying to negotiate a firm upper bound on the number of stores that will have to be closed in the merged DG-FDO to gain FTC approval before providing their reply to FDO's propaganda. This bound will determine DG's announced offer update. I don't see DG walking away from their proposed buyout of FDO. If FDO were to merge with DLTR, the combined entity would pose an existential threat to DG, even under the apparent and incompetent leadership of Levine.
Hang in there... better news is coming.
You think the news this morning from the ISS means DG's hand is being forced? It's a crying shame if so.
The DG deal gives better shareholder value, more synergies, and DG could have the FDO stores turned around in 24 months. (DLTR may well be able to turn it around too, but it will take longer as that's not their area of expertise.) But between the feds holding everything up & Levine continuing to run FDO into the ground, everybody is running out of patience and risk tolerance. Ridiculous.
I wouldn't count DG out just yet.
I couldn't agree more with your facts and observations.
Thanks and let's hope the majority of FDO stockholders continue to withhold authorization of the DLTR deal until DG reports on its negotiations with the FTC and its latest offer (e.g., perhaps a "Hell or High Water" offer or higher price or both)
PS So far FDO stockholders haven't been fooled by Levine's and DLTR's desperate blustering and propaganda.
No. According to Levine, there are 5000+ "problematic" stores, meaning DG and FDO stores that are in close proximity. Presumably only about half of those "problematic" stores would need to go, not to mention Levine is giving us his unofficial biased view.
Look at the last 5 years of metrics and trust DG's management over Levine. DG still has time to negotiate with the FTC (which the fact that their zone pricing is based off WMT and not FDO gives them the edge here) and/or with potential buyer(s) for the divestitures that could still make the deal worthwhile. Don't jump yet; DG has a solid history of coming through.
bobbyconch (Is that you Levine :-),
That's just what Dollar Tree and Levine are hoping you'll do - lose patience, panic and grab the low ball offer. FDO's fortunes have declined rapidly under Levine. What makes you think he'll do any better with a merged DLTR-FDO?
If DG wasn't still committed to the deal, why would they be pursuing, at considerable expense, FTC approval? And why did they proffer a $500M breakup fee?
Expect DG to issue a response/announcement in the next day or so to reassure all those who voted against the DLTR inferior offer and for the DG offer.
PS Do you really think DLTR will pull its offer if stockholders don't vote to accept it? Or do you believe they'll sweeten their offer? Negotiation 101.
Tell DLTR and private equity to suck off. Tell the majority they do not have the right to take away the rights of the minority to take their share shares and give them the price they feel is right. Don't be bullies. If they want to buy the company get 90% in the open markets like the rest of us mortals then buy the rest at 100% markup.
The biggest is that offer expired.
40% profit loss last quarter.
Anti trust filing of 26 states and growing.
Other retailers like, Five Below going below.
And you have a VERY close call of losing Dollar Tree's offer.
You better jump and move quickly and vote for the Dollar Tree offer.
NOTE...Dollar Generals offer is GONE!
What makes you think DG's $80 all cash offer won't stand?
Consider the dueling bidding war by Hertz & Avis for Thrifty Car Rental a few years ago as an example of a competing, superior bid never going "off the table." This is an existential issue for both DLTR and DG. I suspect the latter will prevail.
The $80 all cash is GONE off the table.
That WAS a offer..not any more.
Get what you can before Dollar General say's Bye, Bye.
I just voted my 3000 shares against FDO BoD's latest attempt to gather sufficient votes to sell out to Dollar Tree and preserve Levine's job. Dollar General's $80 ALL CASH offer (which I voted to accept) is far superior to the $74.50 (in stock and cash) offer by Dollar Tree.
Compare, Family Dollar (FDO) earning per share $2.49 to Walmart (WMT) earning per share $4.97
Compare, Family Dollar Price to Earning of $31.49 to Walmart Price to Earning of $18.47
Compare, Family Dollar Dividend of $1.24 or 1.60% to Walmart Dividend of $1.92 or 2.20%
Or Compare Family Dollar to other competitors. Family Dollar is the WORST INVESTMENT.
Perhaps is was a good TRADE, while Family Dollar was in pursuit of buying Dollar tree, but that deal is lost, as well as and their war of discounting prices . 40% profit loss is BIG!
Sentiment: Strong Sell
I've already voted about 6 times. Guess they haven't got the one they want yet. Maybe there were some hung chad or something .
My wife & I have been buying low-end stocks (about 20 so far) w/some
of them creating 'TAX LOTS' & found out the hard way how difficult &
complicated they can be esp when placing an order to sell the 'lower'
priced tax lot & when 'executes' we suffer a 'LOSS' because of the 'FIFO'
rule whereby selling the HIGHER priced tax lot at the LOWER priced
tax lot & can then become even MORE complicated by becoming a
1. How many of you have tax lots?
2. What is your general opinion of tax lots?
3. How do you TRULY avoid a 'FIFO' default when only wanting to sell
the 'LAST' lower priced 'BUY'?
4. 'WASH SALE'??